The purpose of maximizing production will not be achieved in the long run if our present industrial system continues. Our present system is wasteful of human material, partly through damage to the health and efficiency of industrial workers, especially when women and children are employed, partly through the fact that the best workers tend to have small families and that the more civilized races are in danger of gradual extinction. Every great city is a center of race-deterioration. For the case of London this has been argued with a wealth of statistical detail by Sir H. Llewelyn Smith;[13] and it cannot easily be doubted that it is equally true in other cases. The same is true of material resources: the minerals, the virgin forests, and the newly developed wheatfields of the world are being exhausted with a reckless prodigality which entails almost a certainty of hardship for future generations.

Socialists see the remedy in State ownership of land and capital, combined with a more just system of distribution. It cannot be denied that our present system of distribution is indefensible from every point of view, including the point of view of justice. Our system of distribution is regulated by law, and is capable of being changed in many respects which familiarity makes us regard as natural and inevitable. We may distinguish four chief sources of recognized legal rights to private property: (1) a man’s right to what he has made himself; (2) the right to interest on capital which has been lent; (3) the ownership of land; (4) inheritance. These form a crescendo of respectability: capital is more respectable than labor, land is more respectable than capital, and any form of wealth is more respectable when it is inherited than when it has been acquired by our own exertions.

A man’s right to the produce of his own labor has never, in fact, had more than a very limited recognition from the law. The early socialists, especially the English forerunners of Marx, used to insist upon this right as the basis of a just system of distribution, but in the complication of modern industrial processes it is impossible to say what a man has produced. What proportion of the goods carried by a railway should belong to the goods porters concerned in their journey? When a surgeon saves a man’s life by an operation, what proportion of the commodities which the man subsequently produces can the surgeon justly claim? Such problems are insoluble. And there is no special justice, even if they were soluble, in allowing to each man what he himself produces. Some men are stronger, healthier, cleverer, than others, but there is no reason for increasing these natural injustices by the artificial injustices of the law. The principle recommends itself partly as a way of abolishing the very rich, partly as a way of stimulating people to work hard. But the first of these objects can be better obtained in other ways, and the second ceases to be obviously desirable as soon as we cease to worship money.

Interest arises naturally in any community in which private property is unrestricted and theft is punished, because some of the most economical processes of production are slow, and those who have the skill to perform them may not have the means of living while they are being completed. But the power of lending money gives such great wealth and influence to private capitalists that unless strictly controlled it is not compatible with any real freedom for the rest of the population. Its effects at present, both in the industrial world and in international politics, are so bad that it seems imperatively necessary to devise some means of curbing its power.

Private property in land has no justification except historically through power of the sword. In the beginning of feudal times, certain men had enough military strength to be able to force those whom they disliked not to live in a certain area. Those whom they chose to leave on the land became their serfs, and were forced to work for them in return for the gracious permission to stay. In order to establish law in place of private force, it was necessary, in the main, to leave undisturbed the rights which had been acquired by the sword. The land became the property of those who had conquered it, and the serfs were allowed to give rent instead of service. There is no justification for private property in land, except the historical necessity to conciliate turbulent robbers who would not otherwise have obeyed the law. This necessity arose in Europe many centuries ago, but in Africa the whole process is often quite recent. It is by this process, slightly disguised, that the Kimberley diamond mines and the Rand gold mines were acquired in spite of prior native rights. It is a singular example of human inertia that men should have continued until now to endure the tyranny and extortion which a small minority are able to inflict by their possession of the land. No good to the community, of any sort or kind, results from the private ownership of land. If men were reasonable, they would decree that it should cease to-morrow, with no compensation beyond a moderate life income to the present holders.

The mere abolition of rent would not remove injustice, since it would confer a capricious advantage upon the occupiers of the best sites and the most fertile land. It is necessary that there should be rent, but it should be paid to the State or to some body which performs public services; or, if the total rental were more than is required for such purposes, it might be paid into a common fund and divided equally among the population. Such a method would be just, and would not only help to relieve poverty, but would prevent wasteful employment of land and the tyranny of local magnates. Much that appears as the power of capital is really the power of the landowner—for example, the power of railway companies and mine-owners. The evil and injustice of the present system are glaring, but men’s patience of preventable evils to which they are accustomed is so great that it is impossible to guess when they will put an end to this strange absurdity.

Inheritance, which is the source of the greater part of the unearned income in the world, is regarded by most men as a natural right. Sometimes, as in England, the right is inherent in the owner of property, who may dispose of it in any way that seems good to him. Sometimes, as in France, his right is limited by the right of his family to inherit at least a portion of what he has to leave. But neither the right to dispose of property by will nor the right of children to inherit from parents has any basis outside the instincts of possession and family pride.

There may be reasons for allowing a man whose work is exceptionally fruitful—for instance, an inventor—to enjoy a larger income than is enjoyed by the average citizen, but there can be no good reason for allowing this privilege to descend to his children and grandchildren and so on for ever. The effect is to produce an idle and exceptionally fortunate class, who are influential through their money, and opposed to reform for fear it should be directed against themselves. Their whole habit of thought becomes timid, since they dread being forced to acknowledge that their position is indefensible; yet snobbery and the wish to secure their favor leads almost the whole middle-class to ape their manners and adopt their opinions. In this way they become a poison infecting the outlook of almost all educated people.

It is sometimes said that without the incentive of inheritance men would not work so well. The great captains of industry, we are assured, are actuated by the desire to found a family, and would not devote their lives to unremitting toil without the hope of gratifying this desire. I do not believe that any large proportion of really useful work is done from this motive. Ordinary work is done for the sake of a living, and the very best work is done for the interest of the work itself. Even the captains of industry, who are thought (perhaps by themselves as well as by others) to be aiming at founding a family, are probably more actuated by love of power and by the adventurous pleasure of great enterprises. And if there were some slight diminution in the amount of work done, it would be well worth while in order to get rid of the idle rich, with the oppression, feebleness, and corruption which they inevitably introduce.

The present system of distribution is not based upon any principle. Starting from a system imposed by conquest, the arrangements made by the conquerors for their own benefit were stereotyped by the law, and have never been fundamentally reconstructed. On what principles ought the reconstruction to be based?